Banks play very crucial role in the development and growth of an economy. Banks helps to accumulate the saving of public and invest their saving to create new demand deposits, loans and in purchasing investment securities. Banks plays role to provide mobility of capital. Now a day's banking sector is one of the biggest service sectors in India. The five most important banking services are related with checking and saving accounts, loans, and mortgage services, wealth management, providing credit and Debit cards, overdraft services. The banking system is assumed to be most important due to the intense competition. The present paper aims to analyze the impact of liberalization on banking structure. As it is known very well that the growth and profitability are interrelated. The productivity affects in positive way to the growth. The trends equations have been estimated for the liberalization period of twenty five years. The methodology is framed with the Chow test to know the structural changes in the banking sector.

KEYWORDS: Commercial Banks, Growth, Productivity, Liberalization.